Trump Administration Negotiating Oracle’s Takeover of TikTok

TikTok, one of the world’s most popular social media platforms, is at the center of a major negotiation that could reshape its future in the United States. The Trump administration is reportedly negotiating a deal with Oracle that could lead to Oracle taking control of TikTok’s operations globally. With national security concerns at the forefront, the future of TikTok in the U.S. hangs in the balance. But what exactly does this deal mean for TikTok, its users, and the broader social media landscape?

The Background: TikTok’s Battle in the U.S.

In 2020, former President Donald Trump raised alarms about TikTok’s links to ByteDance, the Chinese parent company, citing concerns about user data security. The U.S. government pushed for ByteDance to sell TikTok or face a potential ban. This situation created a dramatic back-and-forth as lawmakers worked to pass a bill that would force ByteDance to either sell TikTok’s U.S. operations or pull the app from the country entirely.

You can read more about how the situation unfolded in NPR’s full report.

While TikTok briefly faced the threat of being banned, Trump delayed the decision and suggested a possible solution—creating a partnership where U.S. entities would have a significant stake in TikTok’s U.S. operations. This led to the idea of Oracle stepping in.

The Oracle Deal: What’s on the Table?

Reports suggest that Oracle is now in talks to take control of TikTok’s global operations, while ByteDance would retain a minority stake. This deal would place a U.S. company in charge of TikTok’s U.S. operations, addressing concerns about data privacy and security. In addition, TikTok would likely continue to serve its vast user base, but with Oracle’s oversight in managing user data in the U.S.

Oracle isn’t a stranger to TikTok. In 2020, TikTok transferred its U.S. user data to Oracle’s cloud servers as part of an agreement to protect user data. Now, Oracle’s role could expand to a full takeover, making it the driving force behind TikTok’s U.S. operations.

A Step Towards a U.S.-Owned TikTok?

Trump’s initial proposal involved creating a joint venture, where the U.S. would hold a 50% stake in TikTok. This idea would give the U.S. government significant influence over the app’s operations. While this is still a work in progress, Oracle’s potential involvement could move us closer to this vision.

If the deal is successful, Oracle will oversee TikTok’s operations, ensuring that all data is stored and processed in compliance with U.S. standards. This would likely reduce national security concerns and allow TikTok to continue its success in the U.S. market.

Concerns and Uncertainty Among Lawmakers

Despite the ongoing negotiations, some U.S. lawmakers have expressed concerns about the deal. They argue that ByteDance should fully divest from TikTok in the U.S., and that Oracle taking partial control might not meet the requirements of the legislation passed last year. These lawmakers want a complete separation from ByteDance to ensure the app’s U.S. operations are independent.

What Does This Mean for TikTok’s Future?

If Oracle takes control of TikTok, the company could face a new era in which it operates with full transparency under U.S. guidelines. However, ByteDance’s minority stake in TikTok could present challenges, as it still maintains some influence over the platform. This deal could set a precedent for how foreign-owned companies operate in the U.S., particularly when national security concerns are involved.

For TikTok users, the deal likely means more confidence in how their data is handled. For Oracle, it would cement its role as a major player in the tech world, with direct control over one of the most influential social platforms in the world.

Conclusion

As negotiations continue, the future of TikTok in the U.S. rests on whether Oracle can successfully take control while meeting the legal and security requirements. This deal could transform TikTok into a more U.S.-centric company, addressing national security concerns while allowing the platform to continue thriving. The coming weeks will determine if Oracle’s role will become permanent, shaping the future of social media in the U.S.